Letter Of Commitment
{{Unreferenced, date=December 2009 :''This article uses the word engagement in a legal sense.'' An engagement letter defines the legal relationship (or engagement) between a professional firm (e.g., law, investment banking, consulting, advisory or accountancy firm) and its client(s). This letter states the terms and conditions of the engagement, principally addressing the scope of the engagement and the terms of compensation for the firm. Most engagement letters follow a standard format. The example given below refers to the engagement of an accountancy firm. Standard format for letters of engagement * Addressee: Typically addressed to the senior management (e.g. CEO) of the client. * Identification of the service to be rendered: One type of service is a financial statement audit. Provided in this section is a brief description of the nature of the particular service. Other services that are planned for the audit (e.g. evaluation of internal control, preparation of regulatory repo ...
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Generally Accepted Accounting Principles
Publicly traded companies typically are subject to rigorous standards. Small and midsized businesses often follow more simplified standards, plus any specific disclosures required by their specific lenders and shareholders. Some firms operate on the cash method of accounting which can often be simple and straight forward. Larger firms most often operate on an accrual basis. Accrual basis is one of the fundamental accounting assumptions and if it is followed by the company while preparing the Financial statements then no further disclosure is required. Accounting standards prescribe in considerable detail what accruals must be made, how the financial statements are to be presented, and what additional disclosures are required. Some important elements that accounting standards cover include: identifying the exact entity which is reporting, discussing any "going concern" questions, specifying monetary units, and reporting time frames. Limitations The notable limitations of accounting ...
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List Of Auditing Topics
This page is a list of auditing topics. A Audit C Control risk - Correctness -Cut-off D Detection risk -Due diligence -Engagement letter E Existence -External audit -External auditor E Financial statement assertions F Fraud deterrence G Going concern I Inherent risk -Internal audit -Internal auditor -Internal control -International Federation of Accountants -International Standards on Auditing M Management representations R Risk assessment S Sampling risk - Stocktaking {{DEFAULTSORT:Auditing Topics Auditing topics Auditing Auditing An audit is an "independent examination of financial information of any entity, whether profit oriented or not, irrespective of its size or legal form when such an examination is conducted with a view to express an opinion thereon.” Auditing ...